Spartan Oil Corp.

Spartan Oil Corp.

September 07, 2011 08:00 ET

Spartan Oil Corp. Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Sept. 7, 2011) - Spartan Oil Corp. ("Spartan" or the "Company") (TSX:STO), is pleased to provide an operational update. Since commencing operations on June 1, 2011, Spartan's efforts have been concentrated at our Keystone property in east Pembina and our southeast Saskatchewan assets.

In Pembina, the Company has tied in and commenced production from its first horizontal Cardium well (50% WI). The well is currently producing at a rate that exceeds our budget expectation with a high fluid level. Spartan has also recently finished drilling its fourth operated horizontal well in the Keystone area. The first of these wells (100% WI) is scheduled to be completed this week. Finally, the Company is participating in 4 Cardium horizontal wells (25.25% WI each) in the Keystone Cardium Unit No. 1 (Keystone 1). Two of these wells have been drilled. The first has been completed and the second is scheduled to be completed later this week. The remaining wells will be drilled later this year.

In southeast Saskatchewan, the Company is pleased to provide an update on two new pool discovery wells that have recently been drilled and completed. Last month, the Company reported a vertical Bakken discovery well (50% WI) at Ceylon. The well, which was not stimulated, has produced an average of 28 bbl/d during the first 30 days of production with a 100% oil cut. We are very encouraged by these initial results and believe that the potential for significantly higher rates exists through horizontal development and fracture stimulation. Together with our partner, the Company is moving ahead with a 3D seismic program covering our lands and is currently in the process of licensing 6 horizontal wells. Spartan has 21 (10.5 net) sections of Crown land on the Ceylon prospect.

At Torquay, the company recently tested a vertical Midale discovery well (50% WI). The well, which was unstimulated, flowed at an average rate (restricted) of 303 bbl/d with a 98% oil cut during a 67 hour test period, following which the well was shut in for equipping. The well was drilled off a proprietary 3D seismic survey. The survey shows several distinct anomalies that are prospective for Midale oil and the Company believes that it has numerous follow up locations at Torquay in the Midale and the Bakken. The well is expected to be on production in the next week.

Website Launch

Spartan is pleased to announce that it has launched its first website. The website offers an easy-to-navigate platform that provides investors with quick access to a wide array of information about Spartan. The new website can be found at

Spartan Oil Corp.

The Company is engaged in the business of acquiring crude oil and natural gas properties and exploring for, developing and producing oil and natural gas in western Canada. Spartan is uniquely positioned with a significant position in two of the leading oil resource plays in western Canada, being the Cardium light oil play in central Alberta and the Bakken light oil resource play in southeast Saskatchewan.


This press release contains certain forward-looking statements (forecasts) under applicable securities laws relating to future events or future performance. Forward-looking statements are necessarily based upon assumptions and judgements with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, well development and operating performance, general economic and business conditions, weather, the regulatory and legal environment and other risks associated with oil and gas operations. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "projects", "plans", "anticipates" and similar expressions. These statements represent management's expectations or beliefs concerning, among other things, future operating results and various components thereof affecting the economic performance of Spartan. Undue reliance should not be placed on these forward-looking statements which are based upon management's assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed above, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted.

In the interest of providing Spartan shareholders and potential investors with information regarding the Company, including management's assessment of Spartan's future plans and operation, certain statements throughout this press release constitute forward looking statements. All forward-looking statements are based on the Company's beliefs and assumptions based on information available at the time the assumption was made. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward looking statements. By its nature, such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking statements. Spartan believes the expectations reflected in those forward looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward looking statements contained throughout this press release should not be unduly relied upon. These statements speak only as of the date specified in the statements.

The Company's actual results could differ materially from those anticipated in the forward looking statements contained throughout this press release.

Except as required by law, Spartan does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil is based on an energy conversion method primarily applicable at the burner tip and is not intended to represent a value equivalency at the wellhead. All boe conversions in this press release are derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil.

Contact Information

  • Spartan Oil Corp.
    Richard F. McHardy, President & CEO
    Michelle A. Wiggins, Vice President Finance & CFO
    (403) 457-4006
    (403) 457-4028 (FAX)